The Brussels Post, 1980-03-26, Page 5THE BRUSSEL:1i POST MARCH 20, 10$0.
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REPAIRS ON
ANTAUTOGLASS
LICENCED BODY MAN — KEVIN MACK
Plus a staff of three lIcenced mechanics.
•
•
• ,;
Were a Problem,
Ikreponse to ,questions .:from the, produc-
ers, Mr. Cringan said the Bank of Montreal”'
asked him to look into the. Whyte ComPanY's
finances last July. • -
Some of the producers then demanded io
know why "the Bank of Montreal was
misleading the bunch of 'us" by still giving
out an A-1 credit rating for the egLgradipg
station as' recently as a few . months ago.
A bank manager in, attendance at the
meeting Tsaid. he had also been- told the
company had an A-1 rating. • ,
The Bank of Montreal did not .haee a
. representative in attendance at the meeting.
Mr. Cringan told producers he found the
company wasn't making enough money on
the eggs being sold and wasn't selling
04it - uary
ALBERT ELSTON CARDIFF
Albert • Cardiff died on
March 22nd, 1980, in Huron--
view, in his 79th year.
Born • in Grey Township
where he farmed until his'
retirement. •
Surviving are his wife, the
fohner Florence Bremner,
three sons, Jack and Jim of
, Brussels, Jerry of Petrolia,
two daughters, Isabel, Mrs.
George' Pearson of Ethel and
Jean, Mrs. Bob Wolfe, • of
Vernon; B.C: Eighteen •
grandchildren and five great
grandchildren.
He was predeceased by his
father, Nelson' Cardiff, and
hiS mother Agnes
McCartney, his step-Mother,
Marjorie Strachan, and an
infant sister.
He, was a member of
Brussels United Church.
• Funeral Services were held
at the Watts Funeral Home
with Eric Le Drew officiating: '
Temperary entombment
.and spring burial in Ethel
Cemetery. "
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(Confirmed from Page 1.)
asked' Mr. Cringan bow' long the bank had
Oven Mr. WhYte to meet his, lean.
Mr. Cringan said Mr, Whyte had been
given one day to raise the S850,000 be owed
the bank.
TheProducers, aS ,unsecured creditors,
• are'unlikely to receive payment: or their last.
shipments of eggs, since the company owes„
almost $1.3 million to secured creditors,
including the-Bank of Montreal and a trust
company. .
Mr. Cringan ' told the producers the•
company had been having financial prob-
lems for some time. He said the company
'was undercapitaliied when it moved to its
new location, that the grading station was
hurt by the cgg shortage a year ago, when
the company had to import eggs from the
U.S. at a loss,. and that high, interest rates
• , ,
the
The magazine
for the whole
farm family
•
I.
I
1.
I—
enough eggs to meet the company's
capacity 'He said in Deceifiber, 1979, the'
company was receiving small eggs, so they
,were,importing larger ones from Manitoba
and selling, eggs at a loss.
He said-the comPany's.Bnancial problems
increased in the months' of December,
January and.February, and the Bank of
Montreal was losing from $10-$20,000 in
those months. '
Mr.' Cringan said negotiations were
underway with another egg grading station
regarding a merger of the two companies,
but the accountant added, "even the
combined coniPanies wouldn't be viable
without an increase in (egg) prices." He said
when the, talks fell through, the Bank of
Montreal decided to call their loan.
• VVhen Brian Ellsworth, manager of the
Ontario Egg. Producers' Marketing Board,
• was asked if the 'board knew CB. Whyte
was having financial problems, Mr. Ells-
'worth said, the board kneW there were some
problems. However,. he said John Whyte
paid his levy as regularly as anyone else and
"our dealings with him ,were all straight-
forward." ,
Mr. Ellsworth said the board wasn't imany
position to say the Whyte operation was less
viable than other operations. He told
, producers the "grading station business is
"very tight and there's very little profit in it:"
He echoed what Mr. Cringan had said,.
that while, there was talk of the Whyte
company merging with another grading-
station "there was too much indebtedness
and not enough proMise of even a merger
pulling them out."
Producers aim; questioned why their eggs
'picked up on. March 7, and delivered to
Whytes, when the-company was going into
receivership.
Howard Wood, of Howard L. Wood
Transport Ltd.,- of Bowmanville, who
shipped eggi for Producers, said his truck
delivered eggs to, the Whyte company at
about 4:30 p.m.,March 7 and that eggs were
unloaded at the station and the bill signed
"received." `.
He said if he hacl.known the company was
going into receivership later that afternoon,
."we could have moved the eggs elsewhere
and probably reduced the producers'
losses."
The money from the eggs shipped March
' 7 will go to the secured creditors of C.B.
Whyte ' and Sons Ltd.
Brian Ellsworth said abou. t 13 producers
in Huron County and eight in Perth County
lost money when the company went into.
;receivership. '
One of the larger producers in the county
lost S24,000 in his final shipments to the
'company and a number of other producers
lost from $9-$10,000 each..
In In response to questions from Producers,
Mr Cringan told them the title to the.eigs
shipped on March 7 changed once they left
the farm and that the eggs, then belonged to
the grading station.
One producer asked, "Why didn't you
dFroisdeayWr,hy tes before the eggs were delivered
The accountant also told farmers they
must return all the equipment such as carts'
and dollies on their farms which belong to
C.B. Whyte , under the• terms of the
Bankruptcy Act. He said legally this.
property now belongs to the seceiver.
A Bruce County producer said he'd
already returned his egg trays by dropping
them on the, desk of the Bank of Montreal
manager in Teewater. •
Another producer called out, '"Would it be
legal for egg producers in Ontario to boycott
the Bank, of Montreal?"
In a meeting held with egg producers and
representatives of the marketing board after
the open part :of .the meeting, the, produeeri
elected a threelnan committee to try and
recover some of the money lost by
Producers. ,
The three men elected Wesley May, a
prodicer front. Hastings , County, Harry
F'elliisero from the Niagara Peninsula, and
Bill Fleming, a feed mill owner whols also a
producer, from Huroe County.
Tom-Graham, an egg-producer from St.
Marys and Ross. McEwan, of the Sarnia
area, members of the egg marketing board
will also serve on the committee.
Bill Fleming said when the committee met
at the Ontario Egg Producers' Marketing
Board in Willowdale on. Monday, the board's
lawyer-discussed the 'matter with them.
The committee then decided to retain a
lawyer who specializies in handling bank-
ruptcy cases. This lawyer will meet with the
committee at a future' date, after he has
studied the Whyte company receivership.
Mr. Fleming said C.B. Whyte can go into
voluntary bankruptcy or unsecured
zeditors, such as the egg producers, can
lave the businessman declare bankruptcy.
Mr. Fleming said if the company:doesn't
lficially declare bankruptcy, then the
operators, as unsecured creditors, won't
recover anything.
The feed mill owner said he suspects the
.sawyer will recommend having. Mr. Whyte's
company declare 'bankruptcy.
The farm magazine especially for
Bruce, Huron and Perth counties
Name
. The Rural Voice
Box 10, Blyth
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